NGPF Activity Bank



NGPF Activity BankInvesting #30INTERACTIVE: Invest with STAX!Interactive: NGPF’s STAXDo YOU have what it takes to be an expert investor? Are you risk-averse, stashing your money in CDs and government bonds? Or will you put all your eggs in one investing basket, buying shares in the hottest tech stocks and watching the prices soar? Play our new investing game to see if you can beat the market in a 20-year period and then answer the reflection questions down below. Good luck!Cheat Sheet:If you get the message “Please rotate your device to continue playing,” minimize your screen by pressing CTRL-minus or Command-minus to get startedYou will have 20 years to invest your moneyOne year = one minute in the gameEvery 6 months (30 seconds in the game), you receive pocket cash to invest. Pocket cash represents 10% of your salary that you are saving. Your pocket cash starts at $2,000 and increases over time as you get raises and bonuses!There are 7 different types of investment opportunities that will be explained in the information boxes. For extra help during the game, click the question mark at the top right of the asset box.Click on the double arrows button to toggle between balance and profit for each investment opportunity.Review STAX: Portfolio Dashboard Reference to familiarize yourself with how the game looks.When you are finished with the game, keep your STAX results window open to answer the questions below.Reflection Questions:Take a screenshot of your portfolio at the end of the game and paste it in the box below. What percentage did you have in each asset class? Complete the table below using the Investment Portfolio pie chart. Estimate the percentage for each of the asset classes using the pie chart as a reference. Type of AssetSavings AccountCertificate of DepositIndex FundIndividual StocksGovernment bondsCommodity CropsGoldDollar AmountPercentageLooking at the table above, did you finish the game with a diversified portfolio? Explain.Describe your investment strategy as you played the game. What was your plan when you first started playing and how did it change during the course of the game?If you didn’t have a strategy, why not? Describe the various emotions you felt as you played the game. How did your emotions impact your decision-making while playing the game? Provide specific examples. What strategy did the computer follow? Why do you think that strategy was so successful in beating so many of the students in your class? Your friend brags, “It was easy to trying to beat the computer in the STAX game. I made $100,000 more with my strategy of actively trading those individual stocks. Why would you want to just buy an index fund? It’s so much fun to try to beat the market!” How would you respond? If you had the opportunity to play STAX a second time, what would be your strategy? What do you think would be the consequences of having less money saved for retirement? How would that impact your life? Bonus Question: You had seven different investment options in the game. The most diversified portfolio would include all of these various options. On average, should this diversified portfolio have the highest return? Why or why not? ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download